If You Borrow $20 000 as a Five-Year Loan from the Bank

question 74

Multiple Choice

If you borrow $20 000 as a five-year loan from the bank and the bank requires you to make end-of-year payments of $4878.05,what is the annual interest rate on this loan?

• A)8 percent
• B)6 percent
• C)7 percent
• D)4 percent

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Definitions:

Reassurance

The act of removing someone's doubts or fears, often by providing comforting words or evidence.

Control

The power to influence or direct people's behavior or the course of events.

Barriers

Obstacles that impede the progress or achievement of a goal.

Effective Listening

The active process of receiving, interpreting, and responding to spoken messages with full attention and understanding.